fed needs to stop wallstreet from endangering financial system and economy

Discussion in 'Trading' started by chewbacca, Jun 29, 2007.

  1. sounds potentially very severe. i hope i eventually get the opportunity to trade under more natural leverage conditions. this phenomenon has gotten a little ridiculous

    better not be a bailout by the taxpayers
    #11     Jun 29, 2007
  2. 2007 BBB- paper is still getting pounded

    ABX-HE-BBB- 07-1
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    #12     Jun 29, 2007
  3. I just reread my own post = 80 pts???!!!!!

    How do you guys see it playing outnext week?

    Three day settlement. Thursday should be hell day for these guys.
    #13     Jun 29, 2007
  4. watch the US dollar index....a break below 81 (sep) should get some attention
    #14     Jun 29, 2007
  5. while I am bullish, even I admit the fed needs to raise rates a quarter point
    #15     Jun 29, 2007
  6. Raise rates into a possible liquidity crisis???
    1929 is not going to happen again. Forget it.
    #16     Jun 29, 2007
  7. we're in worse shape than in '29.....

    let's say you need to dump some BBB- paper and no one bids....

    what's it worth?
    #17     Jun 30, 2007
  8. A contact spoke to an exchange official. The markdowns are real, and there isn't enough equity in the CDO's to cover the debits. THat means, it flows to equities.

    We now find out if a plunge protection team exists.

    I told Byrne to prepare an "I told you so" speech. He has spoken about a systemic problem. This is it. It might end naked shorting. I doubt the Prime Brokers will be in the mood to hold more debits.
    #18     Jun 30, 2007
  9. Well, <b>daddyeaux</b>, it may or may not be worse than '29, but all I was saying is the Fed isn't so stupid that it would raise rates into the teeth of a liquidity crisis, like it did in '29. That lesson's been learned. A lot of people on this board don't seem to like that lesson, but regardless. It's simply not going to happen again, not that way anyway.
    #19     Jun 30, 2007
  10. sjfan


    This doesn't even make any sense. Do you know how cdos work?
    #20     Jun 30, 2007